Aviva hoists dividend as growth comes from all quarters
Aviva
459.70p
16:45 19/04/24
Aviva hiked its dividend 13% as the life insurer posted first half results that were slightly better than expected, with progress coming across the group and strong growth from its smaller fund management and general insurance arms.
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Operating profit rose 11% to £1.47bn in the first six months of the year, just ahead of the consensus forecast of £1.445bn.
Life insurance operating profit grew 8% to £1.3bn, general and health insurance grew 25% to £417m and fund management 45% to £71m
Operating earnings per share of 25.8p came in modestly above the 25p average analyst estimate, with the an interim dividend of 8.4p offered.
The Solvency II coverage ratio improved to 193% from 189% at the end of last year, which was expected, with a capital surplus of £11.4bn and an IFRS net asset value per share of 412p.
Operating capital generation was slightly lower at £1.1bn though cash remittances rose 56% to £1.2bn.
Chief executive Mark Wilson said group was getting "leaner and stronger" and management were "confident in our ability to sustain growth in the coming years".
His strategy to reallocate capital to more profitable areas continued in the first half, with a withdrawal from Spain, sale of the Friends Provident International business and acquisition of a 100% interest in the Vietnamese venture with VietinBank.
He highlighted Aviva's geographic and product diversity, with strong growth in operating profit in the UK, Europe and Aviva Investors.
"We are growing and investing in the UK. We have grown top line sales and bottom line profit in UK general insurance, pensions, annuities and protection. Our digital business continues to make progress, making insurance simpler and more convenient for customers.
"We are getting the basics right. Serving customers well, keeping a tight control on costs and investing in our businesses."
The previously announced £300m share buy-back programme, of which two thirds is still to be completed.